We saw large market declines as 2022 got started – but the real story was the increase in volatility. Especially at the beginning of February, when the market losses leveled off, daily trading was characterized by strong swings up and down. It’s a situation that puts a burden on investors, to recognize the right time to buy in for optimal profits.
The key is not to try and ‘time’ it on daily trading, but to look at longer trends and future predictors. One place to find indicators toward a stock’s near- to mid-term performance is in the buying history of its insiders. These are the corporate officers who steer their companies and know the day-to-day workings of the firms. This knowledge puts them on an inside track when it comes to trading their own company’s stocks – but market regulators require them to publish these trades as a way to level the field. Retail investors can watch those published insider moves; they bring a sometimes-insightful data point to the trading table.
Investors can look to these moves, using TipRanks’ Insiders Hot Stocks tool. We’ve used that tool to do just that, find a couple of stocks whose price has dropped over the past year – and that drop has coincided with some ‘informative buy’ insider trades. Let’s take a closer look.
Rocket Pharmaceuticals (RCKT)
The first insider pick here, Rocket Pharmaceuticals, is a clinical-stage biotech company focused on gene therapy. These are novel treatment options for diseases with ‘high unmet medical needs,’ usually genetic diseases that lead to potentially terminal cancers and pediatric conditions. These therapies offer the potential for cures, at the genetic level within affected cells. Rocket has several clinical-stage programs in progress, targeting a range of conditions, including Danon Disease, Fanconi Anemia, Leukocyte Adhesion Deficiency (LAD-I), and Pyruvate Kinase Deficiency (PKD). The company’s programs use associated viral vector (AAV) and lentiviral vector (LVV) modes as delivery pathways.
Rocket has multiple catalysts coming up this year, on…